$8,000 for first-timers, $6,500 for old-timers

By Layron Livingston - bio | email
Posted by Ellen Krafve - bio | email

TYLER, TX (KLTV) - The government has extended the $8,000 first-time homebuyer tax credit,

"Anything you can put in your pocket is a help, for sure," said Jason Glasscock.

He and his family are looking to buy a new home.  But first, they have to sell their old home.

They put it on the market a couple of weeks ago.  There have been a few showings.  All the Glasscocks need is a contract.

Thanks to the extension, they're getting some help.

According to the Internal Revenue Service, eligible taxpayers must buy a replacement home, or enter into a contract to buy a principal residence by April 30, 2010, and close by June 30, 2010.

First-time buyers can still qualify for the $8,000 credit.  For the first time, long-time homeowners can claim up to $6,500 (up to $3,250 for married couple for married taxpayers who file separately).  Long-time homeowners have to have lived in their previous home for five consecutive years.

"The market has been sluggish, so this is something to give us a little boost," said Nikki Perryman, a Tyler realtor.

The expanded credit also raises previous income restrictions, but only for homes purchased after Nov. 6, 2009.  The credit phases out for individual filers with incomes between $125,000 and $145,000 ($225,000 and $245,000 for couples).  Homes bought *after Nov. 6th. Tyler

With new rules, come new restrictions.  Dependents are not eligible for the credit.  If the home is worth more than $800,000, the tax credit can not be applied.  Taxpayers have the option of claiming their credit on their 2009, or 2010 tax returns.

©2009 KLTV. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.